Accountancy, asked by Dhiyaanesh3772, 1 year ago

Debt to equity ratio is 3:1 total assets is 40000 roe is 27% calculate net profit

Answers

Answered by anuritha
0
given 
debt equity 3:1
total assets = 40000
return on equity =27% or 0.27

asset = liabilities 
let as assume there is no current liability .. and assume as only equity and debt there in liability side 

thus total liablities =40000
 debt / equity =3/1
therefore debt = 30000 and equity is 10000

now , return on equity = net profit / equity*100 
                               0.27 = net profit / 10000

thus net profit = 2700. 







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